sunset from behind the wire

sunset from behind the wire

Thursday, December 6, 2012

Paying for Government

Americans want big government when it comes to not taking responsibility for things and delegating those decisions to --- big government. The problem comes when you need to pay for it.

Bowles-Simpson comes out of the Debt Reduction bi-partisan committee and it generates revenue through big tax increases and cutting spending. Bowles-Simpson get their $2.6 trillion in new revenues by first assuming the Bush tax cuts for the rich expire, adding $800 billion to their baseline. After that they broaden the base. Bowles-Simpson would turn the mortgage interest and charitable giving deductions into 12% nonrefundable credits, phase out the employer healthcare exclusion by 2038, tax municipal bonds, cap tax-preferred retirement contributions to $20,000 or 20 percent of income and eliminate all other tax expenditures. They would tax capital gains and dividends as ordinary income. Even with a top marginal rate of 28 percent, that's a lot more money coming into the IRS -- especially compared to President Obama's plan.

The Obama plan calls for smaller cuts - and smaller revenue, coupled with significant stimulus spending, not indicated on this graph.

The Republicans reject Bowles-Simpson, and think that's a mistake, but nobody asked me. They talk about making big sacrifices to reduce the deficit but there remains the question of details that they haven't provided (on Fox News Sunday last week) regarding deductions, that the Democrats call 'tax loopholes'.

Bowles-Simpson is serious medicine for a serious problem. The other plans are window dressing, puffed by political posturing and in my opinion both the Obama and Republican plan are inadequate and will prolong America's financial pain - with recessions and depressions for the next decade.

Graphs h/t The Atlantic

Should black people bet on Black?

In his first four years in office, President Obama has not addressed the issues set forth below. I wonder whether or not he will do anything about them in the next four years. President Obama is half black, but he seems to derive his identity from his black half. However, what does it really mean to him?

The leading cause of death for black men in America is other black men.
70% of all black babies born in America are born to single parents.
50% of all new AIDS cases in America are black women.
50% of black women (18-45) in America have genital herpes.
60% of black teenage boys drop out of high school in America.

ObamaPhones and government handouts that are schemes to keep black people poor and dependent do not ultimately help, they merely enslave.

h/t WoFat